Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Lumentum Holdings Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
Accounts payable	225,200)	126,300)	169,400)	156,700)	116,900)	150,800)
Accrued payroll and related expenses	57,900)	36,100)	39,400)	54,600)	54,300)	53,400)
Accrued expenses	34,600)	52,400)	51,200)	44,700)	33,100)	23,700)
Current portion of long-term debt	10,600)	—)	311,600)	409,900)	390,700)	—)
Operating lease liabilities, current	11,400)	13,400)	14,400)	11,200)	11,800)	10,800)
Restructuring and related accrual	2,500)	11,100)	5,000)	—)	5,700)	5,200)
Warranty reserve	14,400)	13,200)	6,800)	10,000)	5,000)	5,000)
Deferred revenue and customer deposits	700)	600)	2,100)	—)	600)	1,900)
Finance lease liabilities, current	—)	—)	—)	—)	—)	600)
Income tax payable	29,100)	13,200)	28,000)	26,000)	43,500)	28,800)
Other current liabilities	6,400)	3,000)	5,900)	3,400)	3,000)	2,800)
Other current liabilities	53,100)	41,100)	47,800)	39,400)	57,800)	44,300)
Current liabilities	392,800)	269,300)	633,800)	716,500)	664,600)	283,000)
Long-term debt, excluding current portion	2,562,600)	2,503,200)	2,500,000)	1,466,100)	789,800)	1,120,300)
Operating lease liabilities, non-current	23,600)	43,000)	47,700)	48,800)	47,600)	57,600)
Deferred tax liability	7,200)	55,700)	3,400)	12,900)	35,900)	46,500)
Asset retirement obligation	7,100)	7,500)	8,200)	4,600)	4,700)	4,600)
Pension and related accrual	9,700)	7,500)	9,600)	7,700)	10,800)	11,800)
Unrecognized tax benefit	55,600)	83,000)	64,400)	30,500)	23,000)	17,300)
Other non-current liabilities	25,400)	5,400)	9,200)	100)	2,400)	2,300)
Other non-current liabilities	97,800)	103,400)	91,400)	42,900)	40,900)	36,000)
Non-current liabilities	2,691,200)	2,705,300)	2,642,500)	1,570,700)	914,200)	1,260,400)
Total liabilities	3,084,000)	2,974,600)	3,276,300)	2,287,200)	1,578,800)	1,543,400)
Common stock, $0.001 par value	100)	100)	100)	100)	100)	100)
Additional paid-in capital	1,986,800)	1,835,000)	1,692,200)	2,003,600)	1,743,600)	1,676,600)
Retained earnings (accumulated deficit)	(861,200)	(887,100)	(340,600)	(129,100)	220,900)	64,600)
Accumulated other comprehensive income	9,000)	9,300)	4,100)	400)	8,200)	7,900)
Stockholders’ equity	1,134,700)	957,300)	1,355,800)	1,875,000)	1,972,800)	1,749,200)
Total liabilities and stockholders’ equity	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

The liabilities and stockholders’ equity of the company demonstrate significant fluctuations over the analyzed period. Total liabilities increased substantially from 2020 to 2023, then decreased in 2024, with a slight increase in 2025. Stockholders’ equity exhibited a different pattern, peaking in 2021 and then declining through 2025. A detailed examination of specific liability and equity components reveals key trends.

Current Liabilities: Current liabilities experienced a dramatic increase from $283.0 million in 2020 to $716.5 million in 2022, largely driven by a substantial rise in the current portion of long-term debt. A decrease was observed in 2023 to $633.8 million, followed by a significant drop to $269.3 million in 2024. A subsequent increase to $392.8 million is noted in 2025. Accounts payable also show volatility, decreasing from 2020 to 2021, increasing in 2022 and 2023, then decreasing in 2024, and increasing again in 2025. Accrued expenses generally trended upward from 2020 to 2023, then decreased in 2024 and 2025.
Long-Term Liabilities: Long-term debt, excluding the current portion, increased significantly from $1,120.3 million in 2020 to $2,500.0 million in 2023, remaining relatively stable through 2025. Deferred tax liability showed a decrease from 2020 to 2023, followed by a substantial increase in 2024, and a decrease in 2025. Unrecognized tax benefit increased considerably from 2020 to 2024, before decreasing in 2025. Overall, non-current liabilities followed a similar pattern to total liabilities, increasing through 2023 and remaining high through 2025.
Stockholders’ Equity: Stockholders’ equity peaked at $1,972.8 million in 2021, then experienced a consistent decline through 2025, reaching $1,134.7 million. This decline is primarily attributable to substantial decreases in retained earnings, which transitioned from positive values in 2020 and 2021 to a significant accumulated deficit by 2025. Additional paid-in capital remained relatively stable, with minor fluctuations throughout the period. Accumulated other comprehensive income remained relatively consistent, with a slight increase in 2024 and a decrease in 2025.
Total Liabilities and Stockholders’ Equity: Total liabilities and stockholders’ equity increased from $3,292.6 million in 2020 to $4,632.1 million in 2023, then decreased to $3,931.9 million in 2024, and increased slightly to $4,218.7 million in 2025. The increase from 2020 to 2023 was primarily driven by the increase in total liabilities, while the decrease in 2024 was influenced by the reduction in both total liabilities and stockholders’ equity.

The company’s financial structure underwent considerable change during the analyzed period. The increasing reliance on debt, coupled with the declining retained earnings, suggests a shift in the company’s capital structure and potentially increased financial risk. The fluctuations in current liabilities warrant further investigation to understand the underlying drivers and potential impact on short-term liquidity.

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Lumentum Holdings Inc. (NASDAQ:LITE)

Balance Sheet: Liabilities and Stockholders’ Equity